Clarke County, VA Real Estate Market Update – July 2017
The Clarke County, VA real estate market is an anomaly in the northwestern region of the Shenandoah Valley. It is a market on an island. It’s not literally on an island, but figuratively it is very much isolated from many areas of the Virginia real estate market. You might say, it has its own course and it doesn’t follow its neighbors in their real estate markets.
The Clarke County, VA real estate market is a smaller market, but it still had 123 sales in July. That is the second highest sales volume during the month of July in the past five years. The 2016 July sales were 131, but that was considerably higher than the previous three years. Sales numbers for those three years were 87 in 2015, 100 in 2014 and 99 in 2013. The one obvious thing about the Clarke County, VA real estate sales is that they are all over the map.
Clarke County, VA Real Estate Market – By the numbers
There are a critical numbers in every real estate market. Those numbers tend to tell the story of a market’s health, and Clarke County is no different. In that body of data, days on the market, ratio of distressed properties and volume of sales and sale values are important predictors of future growth or decline. Here again, Clarke County, VA doesn’t always follow the norms, but they do give a glimpse into the future.
The ratio of distressed properties has dropped radically from 2013. There has been a 41% dropped in short sales and foreclosures over the past five years. That’s a very positive number that gives a little insight into the overall health of the market. The July 2017 distressed property sales were 9% of total sales, and that’s good when compared to most of the previous five years. It doesn’t look bad until you look at Clarke County’s next door neighbor, Frederick County. The Frederick County, VA real estate market saw 1.5% distressed property sales in July 2017. Here again, Clarke County is a different animal with different norms.
Over the past five July markets, distressed properties were 2017 – 9%, 2016 – 11%, 2015 – 6%, 2014 – 16% and 2013 – 22%. Only the 2015 had better numbers, but it also had a 30% lower sales volume. In realty, the trend from 2013 to 2017 was continuously moving down, and it is likely that 2015 would have been somewhere between 16% and 11% if the volume was higher.
Clarke County, VA Real Estate Market – Days on the market
Days on the market can also be a predictor of a real estate market’s health. Long periods on the market can signal that there are too many homes on the market, homes are priced too high, home condition issues may exist or there are simply to few buyers for homes.
In reverse, short days on the market can be the result of low inventory, a high number of buyers, well priced homes in desirable locations and in great condition. That short list creates an environment of quick sales and higher volumes of sales.
The five-year average for days on the market in Clarke County is 120, but the July 2017 days on the market hit a low of 91. That is the best overall number for the past five years and it shows a relatively steady decline in days on the market.
Clarke County, VA Real Estate Market – Dollars and cents
The last area of improvement in the Clarke County, VA real estate market is the average price of sales for July. The average sales price was $380,365. That is not a noticeable shift from 2016 which was $377,528, but when you look back five years to 2013, the numbers look better. The 2013 average price for July was $327,939. That’s a 14% increase from 2013.
There has been a steady climb in average sales price since 2013 with 2015 being an exception, but the low sales volume of 2015 caused the average price to be $545,417. Lower volume sales and higher priced homes created that deviation from the current trend.
Overall, the Clarke County, VA real estate market appears to be healthy. It may need a while longer before it fully recovers from its recession hangover, but the data that gives the best view of the market is trending up. When you’re ready to sell or buy a Clarke County, VA home, give your Cornerstone Business Group, Inc., agent a call. We are your real estate sales pros in the Shenandoah Valley.